'Meager' African Aid is Insulting – 100% Debt Cancellation Needed

phpH6Plia.jpg

6-08-05, 10:00 am



Yesterday’s announcement of a proposal for a small increase in humanitarian assistance to African countries by the Bush administration ahead of the G-8 weekend meeting was met with harsh criticism by observers of Bush’s policy toward African countries.

President Bush and Prime Minister Tony Blair met at the White House yesterday to discuss third world debt-related issues. Bush took the opportunity to announce his proposal to increase US aid to selected African countries by $674 million. Aid will be made available to some famine-hit countries that adopt policies favorable to US corporate interests.
Blair’s attempt to convince Bush to work out a more comprehensive plan for a large debt forgiveness package has so far failed, indicating his negligible influence on the Bush administration.

Blair’s plan provides for 100% cancellation of debt to the World Bank and African Development Fund for around 18 poor nations. IMF debts were not included in the package.

Critics of Bush’s aid increase proposal described it as 'disingenuous.'

Salih Booker, executive director of Africa Action, a 52-year old US-based organization that follows African affairs, said, 'The amount of money proposed is meager compared to what debt cancellation would enable African countries to do for themselves. Furthermore, this is not a new commitment – this money has already been approved by Congress.'

Booker argued that the Bush administration is 're-packaging old money' to boost a faltering 'compassionate conservative' image.

In other words, the money Bush is now proposing to spend has been available for months, but needed the right PR moment to be used.

In a published statement, Africa Action condemned the ongoing failure of the US and other industrialized countries to reach an agreement on canceling debts for impoverished countries. Bush’s aid proposal is a diversion from the real issue of debt cancellation, Africa Action insists.

Marie Clarke Brill, Director of Public Education and Mobilization at Africa Action, offered another perspective: 'Unless Africa’s debts are canceled, all new aid will simply flow back out of Africa in the form of debt service payments.'

Salih Booker added, 'When debt cancellation is already acknowledged as an urgent African priority, and when the US has the resources to support a far greater investment in addressing HIV/AIDS and poverty in Africa, today’s media spin focused on feeding the hungry in Africa is almost insulting. We demand justice for Africa’s people, not small gestures of charity and small amounts of food aid.'

Africa Action emphasized that Bush administration initiatives on foreign assistance and on HIV/AIDS in Africa cover only select countries and remain severely under-funded compared both to the need and to the original promises made by Bush two years ago.

Jubilee USA Network, a faith-based organization that advocates debt cancellation for impoverished countries, broadly agreed with Africa Action’s call for debt cancellation. Jubilee described Blair’s debt cancellation proposal as falling short of the needed goal of 100% debt cancellation.

Jubilee added that debt cancellation proposals have to extend to 'all impoverished countries' and 'highlighted the urgency of including IMF debt cancellation in any deal on debt.'

Neil Watkins, National Coordinator of Jubilee USA Network. 'Both leaders referred to proposals for 100% debt cancellation today, but it cannot be called 100% cancellation if it does not include debts owed by impoverished nations to the IMF.'

IMF debt represents 30% of the debt service payments the most impoverished nations will pay over the next 5 years.



--Joel Wendland may by contacted by e-mail at jwendland@politicalaffairs.net.